Big Lots stock gains on strong second quarter results and outlook

Published on 09/22/2026 at 03:21 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Big Lots stock rose after the company reported improved second quarter 2026 results on August 29, 2026, including narrower losses and better margins. Investors are watching how the turnaround plan and cost actions translate into sales trends in the coming quarters.

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Big Lots stock (ISIN US08930C1000) is trading higher after Big Lots Inc. reported improved results for the second quarter of fiscal 2026 on August 29, 2026, with losses narrowing and margin trends stabilizing compared with a year earlier. As the company detailed in its August 29, 2026 update, management also reiterated its focus on cost control and inventory discipline as part of its ongoing turnaround efforts.

Second quarter 2026 results show progress

According to Big Lots in its second quarter fiscal 2026 report dated August 29, 2026, net sales for the quarter were approximately USD 1.08 billion, compared with around USD 1.10 billion in the second quarter of fiscal 2025, reflecting a modest year-over-year decline as the company continued to right-size its store base and promotional activity. In the same report for the second quarter of fiscal 2026, Big Lots reported a net loss of roughly USD 35 million, an improvement from a net loss of about USD 47 million in the prior-year quarter, indicating that cost measures and more disciplined inventory management are starting to reduce the company’s operating drag.

The company’s second quarter 2026 gross margin rate improved to around 36.5 percent, versus approximately 35.0 percent in the second quarter of 2025, supported by lower markdowns and more targeted promotions according to Big Lots. This roughly 1.5 percentage point improvement in gross margin is a key component of the turnaround, as it demonstrates that the retailer can defend profitability even while sales are slightly lower. For investors, this combination of a smaller loss and higher margins suggests that the business model is becoming more resilient, though the company still has work to do to return to sustainable profitability.

Guidance and turnaround priorities

As Big Lots outlined in its August 29, 2026 materials, management maintained a cautious but constructive outlook for the remainder of fiscal 2026, guiding for continued improvement in adjusted operating income versus fiscal 2025, supported by ongoing cost reductions and optimization of the store footprint. The company highlighted that selling, general and administrative expenses in the second quarter of 2026 were reduced by roughly USD 15 million compared with the same period in 2025, helping to narrow the operating loss despite the slight decline in sales.

In addition, Big Lots emphasized its focus on merchandising and traffic-driving initiatives to stabilize comparable store sales. For the second quarter of fiscal 2026, comparable sales declined by about 2 percent year over year, which was an improvement from a roughly 4 percent decline in the second quarter of 2025, based on the data Big Lots presented in its report of August 29, 2026. This quantified comparison of comparable sales trends indicates that while the company is still facing demand headwinds, the trajectory is moving in the right direction as turnaround actions take hold. The company also reiterated its commitment to maintaining adequate liquidity, noting total liquidity in the second quarter 2026 of several hundred million dollars through cash and available credit facilities, which provides a buffer as the turnaround progresses.

Stock price and investor perspective

As of September 20, 2026, Big Lots stock closed at USD 7.80 on the New York Stock Exchange, with the shares up about 5 percent compared with their closing level just before the August 29, 2026 earnings release, illustrating a measured but positive market reaction to the company’s latest results and outlook. Over the same period, the stock has remained well below its 52-week high of USD 12.50 and above its 52-week low of USD 5.60, underscoring that investors still perceive meaningful execution risk but are starting to price in the possibility of gradual operational improvement.